Shannon Plans to Acquire River Crest Hospital

SAN ANGELO, TX – Shannon Medical Center has signed an agreement to acquire River Crest Hospital, an 80-bed local behavioral health center in San Angelo, Texas, from Universal Health Services, Inc.

“Last year, a lack of behavioral health resources was identified as the most critical healthcare need in our community. Additionally, for the second year in a row, Texas ranked as the worst state in the country for access to mental health services according to Forbes Advisor. These findings demonstrate the urgency to make this right next step to address the behavioral health needs of our community,” said Shane Plymell, president and chief executive officer of Shannon Medical Center. “This new addition to the Shannon Health System will ensure community members of all ages who struggle with behavioral health and substance abuse issues will have expanded access to specialized care.”

River Crest Hospital, an 80-bed behavioral health center, has been part of the San Angelo community for more than 30 years. River Crest Hospital offers behavioral health and substance use disorder programs for children, adolescents, adults and military members. Shannon currently has a 22-bed regional inpatient psychiatric facility that provides behavioral health services for adults and senior adults. Both also offer outpatient behavioral health programs.

“Throughout this process, we have been impressed by the conversations we’ve had with Shannon about the current and future needs of behavioral health in the San Angelo community,” said Phuong Cardoza, Group Director, Behavioral Health, UHS. “Joining Shannon will ensure River Crest can continue to meet this critical community need and to invest in our physicians and staff who provide outstanding care every day.”

Through the proposed acquisition Shannon Medical Center is committed to:

• Care coordination. The addition of River Crest Hospital will ensure that when patients need a higher level of care, they will be able to seamlessly transition to other services they may need. Specifically, Shannon will enhance connectivity to a combined care team, implement collaborative processes and leverage additional resources to provide a better patient experience.
• Maintaining and enhancing local services. Shannon will secure the future of comprehensive behavioral health services for the region and preserve access to the local care the community desperately needs.
• Resource investments. Shannon is committed to expanding behavioral health services in the Concho Valley through facility upgrades, services, technology and equipment as well as additional behavioral health employees and providers. Phase 1 will include expanding the River Crest campus with 20 additional beds. Phase 2 expansion will add 20 more beds to the facility.

The acquisition is expected to be finalized in September of 2024. In the meantime, nothing will change for patients or employees of either organization.

Shannon said it is committed to keeping the community informed throughout this process by providing updates at www.CareForSanAngelo.com.

The announcement to staff at River Crest happened today at 2:45 p.m. Rumors of UHS's search for a suitor have been swirling for months with several other large Texas health systems mentioned in addition to Shannon. Shannon's stated vision for this acquisition is, "Goal of the addition is to expand access to behavioral health services and make a significant impact on this vital community need."